Bill Text: OR HB2823 | 2013 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to communities governed by declaration.
Spectrum: Committee Bill
Status: (Enrolled - Dead) 2013-07-08 - In conference committee upon adjournment. [HB2823 Detail]
Download: Oregon-2013-HB2823-Introduced.html
Bill Title: Relating to communities governed by declaration.
Spectrum: Committee Bill
Status: (Enrolled - Dead) 2013-07-08 - In conference committee upon adjournment. [HB2823 Detail]
Download: Oregon-2013-HB2823-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2946
House Bill 2823
Sponsored by COMMITTEE ON CONSUMER PROTECTION AND GOVERNMENT
EFFICIENCY
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Specifies individuals who may control association accounts of
planned community or condominium. Requires regular review or
audit of association accounts.
Allows reserve accounts to be invested in accounts insured by
Securities Investor Protection Corporation.
Specifies investment objectives for association.
Requires association to obtain insurance to protect against
dishonest and criminal conduct of representatives of association.
A BILL FOR AN ACT
Relating to communities governed by declaration; creating new
provisions; and amending ORS 94.550, 94.640, 94.670, 94.680,
100.005, 100.417, 100.435 and 100.480 and sections 24 and 26,
chapter 803, Oregon Laws 2003.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 94.670 is amended to read:
94.670. (1) A homeowners association shall retain within this
state the documents, information and records delivered to the
association under ORS 94.616 and all other records of the
association for not less than the period specified for the record
in ORS 65.771 or any other applicable law except that:
(a) The documents specified in ORS 94.616 (3)(o), if received,
must be retained as permanent records of the association.
(b) Proxies and ballots must be retained for one year from the
date of determination of the vote, except that proxies and
ballots relating to an amendment to the declaration, bylaws or
other governing document must be retained for one year from the
date the amendment is effective.
{ - (2)(a) All assessments, including declarant subsidies and
all other association funds, shall be deposited and maintained in
the name of the association in one or more separate federally
insured accounts, including certificates of deposit, at a
financial institution, as defined in ORS 706.008, other than an
extranational institution. Except as provided in paragraph (b) of
this subsection, funds must be maintained in an association
account until disbursed. - }
{ - (b) Subject to any limitations imposed by the declaration
or bylaws, funds of the association maintained in accounts
established under this subsection may be used to purchase
obligations of the United States government. - }
{ - (c) All expenses of the association shall be paid from
the association account. - }
{ + (2)(a) Except as provided otherwise in paragraph (e) of
this subsection, all funds of the association, including
assessments and declarant subsidies, must be deposited and
maintained in the name of the association in one or more
association accounts until disbursed.
(b) An operating account must be held in a federally insured
account, including a certificate of deposit, at a financial
institution, as defined in ORS 706.008, other than an
extranational institution.
(c) A reserve account, as described in ORS 94.595, must be held
in:
(A) A federally insured account, including a certificate of
deposit, at a financial institution, as defined in ORS 706.008,
other than an extranational institution; or
(B) An account insured by the Securities Investor Protection
Corporation.
(d) The association may not maintain funds in an account, or at
any one institution, in an amount that exceeds the insurance
limits applicable to the account or institution.
(e) Subject to limitations imposed by the declaration or
bylaws, if any, funds of the association may be used to purchase
obligations of the United States Government.
(f) The investment objectives of an association are:
(A) Preservation of capital; and
(B) Maintaining sufficient liquidity to meet the financial
obligations of the planned community.
(g) The association may maintain a nonconforming investment of
association funds established before the effective date of this
2013 Act. When the nonconforming investment is liquidated, future
investments of the association funds must conform with the
requirements of this subsection. + }
(3) The association shall keep financial records sufficiently
detailed for proper accounting purposes.
(4) Within 90 days after the end of the fiscal year, the board
of directors shall:
(a) Prepare or cause to be prepared an annual financial
statement consisting of a balance sheet and income and expenses
statement for the preceding fiscal year; and
(b) Distribute to each owner and, upon written request, any
mortgagee of a lot, a copy of the annual financial statement.
(5) Subject to section 24, chapter 803, Oregon Laws 2003, the
association of a planned community that has annual assessments
{ - exceeding - } { + greater than + } $75,000 { + and less
than $500,000 + } shall cause the financial statement required
under subsection (4) of this section to be reviewed { + in the
manner required by subsection (9) of this section + }within 180
days after the end of the fiscal year { - by an independent
certified public accountant licensed in the State of Oregon in
accordance with the Statements on Standards for Accounting and
Review Services issued by the American Institute of Certified
Public Accountants - } .
(6) { + Subject to section 24, chapter 803, Oregon Laws 2003,
+ }the association of a planned community created on or after
January 1, 2004, or the association of a planned community
described in ORS 94.572 that has annual assessments of $75,000 or
less shall cause the most recent financial statement required by
subsection (4) of this section to be reviewed in the manner
{ - described in subsection (5) - } { + required by subsection
(9) + } of this section within 180 days after the association
receives a petition requesting review signed by at least a
majority of the owners.
{ + (7) The association of a planned community that has
annual assessments of $500,000 or more shall cause the financial
statement required under subsection (4) of this section to be
audited within 180 days after the end of the fiscal year in the
manner required by subsection (9) of this section. + }
{ - (7) - } { + (8) + } An association subject to the
{ - requirements of subsection (5) - } { + review requirements
of subsection (5) or (6) + } of this section may elect, on an
annual basis, not to comply with the requirements { - of
subsection (5) of this section - } by an affirmative vote of at
least 60 percent of the owners, not including the votes of the
declarant with respect to lots owned by the declarant.
{ + (9) The reviews of financial statements required under
subsection (5) or (6) of this section and the audits required
under subsection (7) of this section must be performed in
accordance with standards issued by the American Institute of
Certified Public Accountants by an independent certified public
accountant licensed in Oregon. + }
{ - (8)(a) - } { + (10)(a) + } The association shall
provide, within 10 business days of receipt of a written request
from an owner, a written statement that provides:
(A) The amount of assessments due from the owner and unpaid at
the time the request was received, including:
(i) Regular and special assessments;
(ii) Fines and other charges;
(iii) Accrued interest; and
(iv) Late payment charges.
(B) The percentage rate at which interest accrues on
assessments that are not paid when due.
(C) The percentage rate used to calculate the charges for late
payment or the amount of a fixed charge for late payment.
(b) The association is not required to comply with paragraph
(a) of this subsection if the association has commenced
litigation by filing a complaint against the owner and the
litigation is pending when the statement would otherwise be due.
{ - (9)(a) - } { + (11)(a) + } Except as provided in
paragraph (b) of this subsection, the association shall make the
documents, information and records described in subsections (1)
and (4) of this section and all other records of the association
reasonably available for examination and, upon written request,
available for duplication by an owner and any mortgagee of a lot
that makes the request in good faith for a proper purpose.
(b) Records kept by or on behalf of the association may be
withheld from examination and duplication to the extent the
records concern:
(A) Personnel matters relating to a specific identified person
or a person's medical records.
(B) Contracts, leases and other business transactions that are
currently under negotiation to purchase or provide goods or
services.
(C) Communications with legal counsel that relate to matters
specified in subparagraphs (A) and (B) of this paragraph and the
rights and duties of the association regarding existing or
potential litigation or criminal matters.
(D) Disclosure of information in violation of law.
(E) Documents, correspondence or management or board reports
compiled for or on behalf of the association or the board of
directors by its agents or committees for consideration by the
board of directors in executive session held in accordance with
ORS 94.640 (8).
(F) Documents, correspondence or other matters considered by
the board of directors in executive session held in accordance
with ORS 94.640 (8).
(G) Files of individual owners, other than those of a
requesting owner or requesting mortgagee of an individual owner,
including any individual owner's file kept by or on behalf of the
association.
{ - (10) - } { + (12) + } The association shall maintain a
copy, suitable for the purpose of duplication, of the following:
(a) The declaration and bylaws, including amendments or
supplements in effect, the recorded plat, if feasible, and the
association rules and regulations currently in effect.
(b) The most recent financial statement prepared pursuant to
subsection (4) of this section.
(c) The current operating budget of the association.
(d) The reserve study, if any, described in ORS 94.595.
(e) Architectural standards and guidelines, if any.
{ - (11) - } { + (13) + } The association, within 10
business days after receipt of a written request by an owner,
shall furnish the requested information required to be maintained
under subsection
{ - (10) - } { + (12) + } of this section.
{ - (12) - } { + (14) + } The board of directors, by
resolution, may adopt reasonable rules governing the frequency,
time, location, notice and manner of examination and duplication
of association records and the imposition of a reasonable fee for
furnishing copies of any documents, information or records
described in this section. The fee may include reasonable
personnel costs for furnishing the documents, information or
records.
SECTION 2. ORS 94.680 is amended to read:
94.680. (1) If a declaration or bylaws provide that the
homeowners association has the sole authority to decide whether
to repair or reconstruct a unit that has suffered damage or
whether a unit must be repaired or reconstructed, the board of
directors { + of the association + } shall obtain blanket
all-risk insurance for the full replacement cost of all
structures in the planned community. Cost of the coverage shall
be a common expense to the association.
(2) If the declaration or bylaws contain a provision described
in subsection (1) of this section, the declaration or bylaws also
shall provide:
(a) Requirements of or limitations on repairing or
reconstructing damaged or destroyed property;
(b) The time within which the repair or reconstruction must
begin; and
(c) The actions the board of directors must take if:
(A) Damage or destruction is not repaired or replaced; or
(B) Insurance proceeds exceed or fall short of the costs of
repair or reconstruction.
{ + (3) Notwithstanding a provision in the declaration or
bylaws, the board of directors, or a declarant as provided in
subsection (4) of this section, shall obtain and maintain
insurance:
(a) That covers acts of dishonesty, embezzlement and theft by
officers, directors, association employees, contracted community
association managers, bookkeepers and other persons authorized by
the association to handle moneys of the association; and
(b) In an amount equal to or greater than the sum of aggregate
assessments on all units for three months plus the total amount
of moneys in reserve accounts.
(4) During a period of declarant control of the association,
the declarant, on behalf of the association, shall obtain and
maintain insurance required under subsection (3) of this section
within 30 days after the date of conveyance of the first unit in
the condominium. + }
SECTION 3. { + Section 4 of this 2013 Act is added to and made
a part of ORS 94.550 to 94.783. + }
SECTION 4. { + (1) Notwithstanding a provision in the
declaration or bylaws of a planned community, unless a resolution
adopted by the board of directors of a homeowners association
provides otherwise, only the following individuals may be an
association account holder:
(a) A member of the board of directors.
(b) An officer of the association who is either:
(A) An owner or co-owner of a lot; or
(B) A representative of an owner or co-owner of a lot who meets
the qualifications described in subsection (2) of this section.
(2) An individual who is an officer of the association under
subsection (1)(b)(B) of this section must meet one of the
following qualifications:
(a) If a corporation, limited liability company or partnership
is the owner or co-owner of a lot, or owns an interest in an
entity that owns the lot, the officer of the association
representing the entity must be:
(A) An officer, employee or agent of the corporation;
(B) A member, manager, employee or agent of the limited
liability company; or
(C) A partner, employee or agent of the partnership.
(b) If a trustee holds legal title to a lot in trust for the
benefit of the owner of the beneficial interest in the lot, the
officer of the association representing the trust must be a
trustee.
(c) If a court has appointed an executor, administrator,
guardian, conservator or other individual to serve in a fiduciary
capacity for an owner of a lot, the officer of the association
must be the executor, administrator, guardian, conservator or
other individual appointed by the court. If the court has
appointed an entity to serve in a fiduciary capacity for an owner
of a lot, the officer of the association must be an officer or
employee of the appointed entity.
(3) An association account holder may not delegate the holder's
authority to transact business on behalf of the association or to
access an association account. + }
SECTION 5. ORS 94.550 is amended to read:
94.550. As used in ORS 94.550 to 94.783:
(1) 'Assessment' means any charge imposed or levied by a
homeowners association on or against an owner or lot pursuant to
the provisions of the declaration or the bylaws of the planned
community or provisions of ORS 94.550 to 94.783.
{ + (2) 'Association account' means an operating account, as
described in ORS 94.670, or a reserve account, as described in
ORS 94.595.
(3) 'Association account holder' means an individual:
(a) Who is designated and authorized to transact business on
behalf of a homeowners association by accessing moneys in an
association account required by ORS 94.670; and
(b) Whose signature is on file with the financial institution
that maintains the association account. + }
{ - (2) - } { + (4) + } 'Blanket encumbrance' means a trust
deed or mortgage or any other lien or encumbrance, mechanic's
lien or otherwise, securing or evidencing the payment of money
and affecting more than one lot in a planned community, or an
agreement affecting more than one lot by which the developer
holds such planned community under an option, contract to sell or
trust agreement.
{ - (3) - } { + (5) + } 'Class I planned community' means a
planned community that:
(a) Contains at least 13 lots or in which the declarant has
reserved the right to increase the total number of lots beyond
12; and
(b) Has an estimated annual assessment, including an amount
required for reserves under ORS 94.595, exceeding $10,000 for all
lots or $100 per lot, whichever is greater, based on:
(A) For a planned community created on or after January 1,
2002, the initial estimated annual assessment, including a
constructive assessment based on a subsidy of the association
through a contribution of funds, goods or services by the
declarant; or
(B) For a planned community created before January 1, 2002, a
reasonable estimate of the cost of fulfilling existing
obligations imposed by the declaration, bylaws or other governing
document as of January 1, 2002.
{ - (4) - } { + (6) + } ' Class II planned community'
means a planned community that:
(a) Is not a Class I planned community;
(b) Contains at least five lots; and
(c) Has an estimated annual assessment exceeding $1,000 for all
lots based on:
(A) For a planned community created on or after January 1,
2002, the initial estimated annual assessment, including a
constructive assessment based on a subsidy of the association
through a contribution of funds, goods or services by the
declarant; or
(B) For a planned community created before January 1, 2002, a
reasonable estimate of the cost of fulfilling existing
obligations imposed by the declaration, bylaws or other governing
document as of January 1, 2002.
{ - (5) - } { + (7) + } 'Class III planned community' means
a planned community that is not a Class I or II planned
community.
{ - (6) - } { + (8) + } 'Common expenses' means
expenditures made by or financial liabilities incurred by the
homeowners association and includes any allocations to the
reserve account under ORS 94.595.
{ - (7) - } { + (9) + } 'Common property' means any real
property or interest in real property within a planned community
which is owned, held or leased by the homeowners association or
owned as tenants in common by the lot owners, or designated in
the declaration or the plat for transfer to the association.
{ - (8) - } { + (10) + } 'Condominium' means property
submitted to the provisions of ORS chapter 100.
{ - (9) - } { + (11) + } 'Declarant' means any person who
creates a planned community under ORS 94.550 to 94.785.
{ - (10) - } { + (12) + } 'Declarant control' means any
special declarant right relating to administrative control of a
homeowners association, including but not limited to:
(a) The right of the declarant or person designated by the
declarant to appoint or remove an officer or a member of the
board of directors;
(b) Any weighted vote or special voting right granted to a
declarant or to units owned by the declarant so that the
declarant will hold a majority of the voting rights in the
association by virtue of such weighted vote or special voting
right; and
(c) The right of the declarant to exercise powers and
responsibilities otherwise assigned by the declaration or bylaws
or by the provisions of ORS 94.550 to 94.783 to the association,
officers of the association or board of directors of the
association.
{ - (11) - } { + (13) + } 'Declaration' means the
instrument described in ORS 94.580 which establishes a planned
community, and any amendments to the instrument.
{ - (12) - } { + (14) + } 'Governing document' means an
instrument or plat relating to common ownership or common
maintenance of a portion of a planned community and that is
binding upon lots within the planned community.
{ - (13) - } { + (15) + } 'Homeowners association' or
'association ' means the organization of owners of lots in a
planned community, created under ORS 94.625, required by a
governing document or formed under ORS 94.572.
{ - (14) - } { + (16) + } 'Majority' or 'majority of votes'
or ' majority of owners' means more than 50 percent of the votes
in the planned community.
{ - (15) - } { + (17) + } 'Mortgagee' means any person who
is:
(a) A mortgagee under a mortgage;
(b) A beneficiary under a trust deed; or
(c) The vendor under a land sale contract.
{ + (18) 'Obligations of the United States Government' means
Treasury bills, notes or bonds. + }
{ - (16) - } { + (19) + } 'Owner' means the owner of any
lot in a planned community, unless otherwise specified, but does
not include a person holding only a security interest in a lot.
{ - (17) - } { + (20) + } 'Percent of owners' or
'percentage of owners ' means the owners representing the
specified voting rights as determined under ORS 94.658.
{ - (18)(a) - } { + (21)(a) + } ' Planned community' means
any subdivision under ORS 92.010 to 92.192 that results in a
pattern of ownership of real property and all the buildings,
improvements and rights located on or belonging to the real
property, in which the owners collectively are responsible for
the maintenance, operation, insurance or other expenses relating
to any property within the planned community, including common
property, if any, or for the exterior maintenance of any property
that is individually owned.
(b) 'Planned community' does not mean:
(A) A condominium under ORS chapter 100;
(B) A planned community that is exclusively commercial or
industrial; or
(C) A timeshare plan under ORS 94.803 to 94.945.
{ - (19) - } { + (22) + } 'Purchaser' means any person
other than a declarant who, by means of a voluntary transfer,
acquires a legal or equitable interest in a lot, other than as
security for an obligation.
{ - (20) - } { + (23) + } 'Purchaser for resale' means any
person who purchases from the declarant more than two lots for
the purpose of resale whether or not the purchaser for resale
makes improvements to the lots before reselling them.
{ - (21) - } { + (24) + } 'Special declarant rights' means
any rights, in addition to the rights of the declarant as a lot
owner, reserved for the benefit of the declarant under the
declaration or ORS 94.550 to 94.783, including but not limited
to:
(a) Constructing or completing construction of improvements in
the planned community which are described in the declaration;
(b) Expanding the planned community or withdrawing property
from the planned community under ORS 94.580 (3) and (4);
(c) Converting lots into common property;
(d) Making the planned community subject to a master
association under ORS 94.695; or
(e) Exercising any right of declarant control reserved under
ORS 94.600.
{ - (22) - } { + (25) + } 'Successor declarant' means the
transferee of any special declarant right.
{ - (23) - } { + (26) + } 'Turn over' means the act of
turning over administrative responsibility pursuant to ORS 94.609
and 94.616.
{ - (24) - } { + (27) + } 'Unit' means a building or
portion of a building located upon a lot in a planned community
and designated for separate occupancy or ownership, but does not
include any building or portion of a building located on common
property.
{ - (25) - } { + (28) + } 'Votes' means the votes allocated
to lots in the declaration under ORS 94.580 (2).
SECTION 6. Section 24, chapter 803, Oregon Laws 2003, as
amended by section 38, chapter 641, Oregon Laws 2009, is amended
to read:
{ + Sec. 24. + } The requirements of ORS 94.670 (5) { + and
(6) + } first apply:
(1) Commencing with the fiscal year following the turnover
meeting required by ORS 94.616 for the association of a planned
community created under ORS 94.550 to 94.783 prior to January 1,
2004, if the turnover meeting has not yet occurred on January 1,
2004.
(2) Commencing with the fiscal year beginning in calendar year
2004 for the association of a planned community created under ORS
94.550 to 94.783 if the turnover meeting required by ORS 94.616
has occurred on or before January 1, 2004.
(3) Commencing with the fiscal year following the turnover
meeting required by ORS 94.616 for the association of a planned
community created under ORS 94.550 to 94.783 on or after January
1, 2004.
(4) Commencing with the fiscal year following the year in which
owners assume responsibility for administration of a planned
community described in ORS 94.572 if the owners have not assumed
responsibility for administration of the planned community on
January 1, 2004.
(5) Commencing with the fiscal year beginning in calendar year
2004 for the association of a planned community described in ORS
94.572 if the owners have assumed responsibility for
administration of the planned community on or before January 1,
2004.
SECTION 7. ORS 100.435 is amended to read:
100.435. (1) If the bylaws provide that { - the - }
{ + an + } association of unit owners has the sole authority to
decide whether to repair or reconstruct a unit that has suffered
damage or that a unit must be repaired or reconstructed, the
board of directors shall obtain { + , + }
{ - and - } maintain at all times and { - shall pay for - }
{ + pay, + } out of the common expense funds, { + for + } the
following insurance covering both the common elements and
individual units:
(a) Property insurance including, but not limited to, fire,
extended coverage, vandalism and malicious mischief; and
(b) Insurance covering the legal liability of the association
of unit owners, the unit owners individually and the manager
including, but not limited to, the board of directors, the public
and the unit owners and their invitees or tenants, incident to
ownership, supervision, control or use of the property. There may
be excluded from the policy required under this paragraph,
coverage of a unit owner, other than coverage as a member of the
association of unit owners or board of directors, for liability
arising out of acts or omissions of that unit owner and liability
incident to the ownership or use of the part of the property as
to which that unit owner has the exclusive use or occupancy.
Liability insurance required under this paragraph shall be issued
on a comprehensive liability basis and shall provide a cross
liability indorsement providing that the rights of a named
insured under the policy do not prejudice any action against
another named insured.
(2) If the bylaws require the individual unit owners to obtain
insurance for their units, the bylaws also shall contain a
provision requiring the board of directors to obtain the
following insurance covering the common elements:
(a) Property insurance including, but not limited to, fire,
extended coverage, vandalism and malicious mischief; and
(b) Insurance covering the legal liability of the association
of unit owners and the manager including, but not limited to, the
board of directors, to the public or the unit owners and their
invitees or tenants, incident to supervision, control or use of
the property.
(3) The board of directors shall obtain, if reasonably
available, terms in insurance policies under this section that
provide a waiver of subrogation by the insurer as to any claims
against the board of directors of the association.
(4) Notwithstanding a provision in the declaration or bylaws of
a condominium, including a condominium created before September
27, 2007, that imposes a maximum deductible amount of $10,000 or
less in an association insurance policy, if the board of
directors determines that it is in the best interest of the
association of unit owners and of the unit owners, as provided in
subsection (5) of this section, the board may adopt a resolution
authorizing the association to obtain and maintain an insurance
policy with a deductible amount exceeding the specified maximum,
but not in excess of the greater of:
(a) The maximum deductible acceptable to the Federal National
Mortgage Association; or
(b) $10,000.
(5) In making the determination under subsection (4) of this
section, the board of directors shall consider such factors as
the availability and cost of insurance and the loss experience of
the association.
(6) If the declaration or bylaws of a condominium created
before September 27, 2007, do not assign the responsibility for
payment of the amount of the deductible in an association
insurance policy, the board of directors may adopt a resolution
that assigns the responsibility for payment of the amount of the
deductible. The resolution must include, but need not be limited
to:
(a) The circumstances under which the deductible will be
charged against:
(A) A unit owner or the unit owners affected by a loss; or
(B) All unit owners;
(b) The allocation of the deductible charged under paragraph
(a) of this subsection; and
(c) If a unit owner and the association have duplicate
insurance coverage, the insurance policy that is primary, unless
otherwise provided in the declaration or bylaws.
(7) If the board of directors adopts a resolution described in
subsection (6) of this section, the resolution may require that a
unit owner, in addition to any other insurance required by the
declaration or bylaws, obtain and maintain:
(a) An insurance policy that insures the unit owner's unit and
appurtenant limited common elements for not less than the amount
of the deductible in the association's insurance policy for which
the unit owner may be responsible and that insures the unit
owner's personal property for any loss or damage; and
(b) Comprehensive liability insurance that includes, but is not
limited to, coverage for negligent acts of unit owners and
tenants, guests of unit owners and tenants and occupants of other
units for damage to the general and limited common elements, to
other units and to the personal property of other persons that is
located in other units or the common elements.
(8) Unless otherwise provided in the declaration or bylaws, the
board of directors may adopt a resolution that:
(a) Prescribes a procedure for processing insurance claims.
The procedure may require that all claims against the
association's insurance policy be processed through and
coordinated by the board of directors or the managing agent, if
authorized by the board.
(b) Assigns the responsibility for payment of charges for
handling claims, including any charges by a managing agent.
(9) Not later than 10 days after adoption of a resolution under
subsection (4), (6) or (8) of this section, the board of
directors shall ensure that a copy of the resolution and a notice
described in subsection (10) of this section are:
(a) Delivered to each unit owner; or
(b) Mailed to the mailing address of each unit owner or to the
mailing address designated in writing by the unit owner.
(10) The notice required under subsection (9) of this section
shall:
(a) Advise the unit owner to contact the unit owner's insurance
agent to determine the effect of the resolution on the unit
owner's individual insurance coverage; and
(b) Be in a form and style reasonably calculated to inform the
unit owner of the importance of the notice.
(11) Failure to provide a copy of a resolution or a notice
required under this section does not affect the responsibility of
a unit owner to comply with a resolution adopted under this
section.
{ + (12) Notwithstanding a provision in the declaration or
bylaws, the board of directors of an association, or a declarant
as provided in subsection (13) of this section, shall obtain and
maintain insurance:
(a) That covers acts of dishonesty, embezzlement and theft by
officers, directors, association employees, contracted community
association managers, bookkeepers and other persons authorized by
the association to handle moneys of the association; and
(b) In an amount equal to or greater than the sum of aggregate
assessments on all units for three months plus the total amount
of moneys in reserve accounts.
(13) During a period of declarant control of the association,
the declarant, on behalf of the association, shall obtain and
maintain insurance required under subsection (12) of this section
within 30 days after the date of conveyance of the first unit in
the condominium. + }
SECTION 8. ORS 100.480 is amended to read:
100.480. (1) An association of unit owners shall retain within
this state the documents, information and records delivered to
the association under ORS 100.210 and all other records of the
association for not less than the period specified for the record
in ORS 65.771 or any other applicable law, except that:
(a) The documents specified in ORS 100.210 (5)(j), if received,
must be retained as permanent records of the association.
(b) Proxies and ballots must be retained for one year from the
date of determination of the vote, except proxies and ballots
relating to an amendment to the declaration, supplemental
declaration plat, supplemental plat or bylaws must be retained
for one year from the date the amendment is recorded.
(2) The association of unit owners shall keep financial records
sufficient for proper accounting purposes.
{ - (3)(a) All assessments and other association funds shall
be deposited and maintained in the name of the association in one
or more separate federally insured accounts, including
certificates of deposit, at a financial institution, as defined
in ORS 706.008, other than an extranational institution. Except
as provided in paragraph (b) of this subsection, funds must be
maintained in an association account until disbursed. - }
{ - (b) Subject to any limitations imposed by the declaration
or bylaws, association funds maintained in accounts established
under this subsection may be used to purchase obligations issued
by the United States government. - }
{ - (c) All expenses of the association shall be paid from
the association account. - }
{ + (3)(a) Except as provided otherwise in paragraph (e) of
this subsection, all funds of the association, including
assessments and declarant subsidies, must be deposited and
maintained in the name of the association in one or more fully
insured association accounts until disbursed.
(b) An operating account must be held in a federally insured
account, including a certificate of deposit, at a financial
institution, as defined in ORS 706.008, other than an
extranational institution.
(c) A reserve account, as described in ORS 100.175, must be
held in:
(A) A federally insured account, including a certificate of
deposit, at a financial institution, as defined in ORS 706.008,
other than an extranational institution; or
(B) An account insured by the Securities Investor Protection
Corporation.
(d) The association may not maintain funds in an account, or at
any one institution, in an amount that exceeds the insurance
limits applicable to the account or institution.
(e) Subject to limitations imposed by the declaration or
bylaws, if any, funds of the association may be used to purchase
obligations of the United States Government.
(f) The investment objectives of an association are:
(A) Preservation of capital; and
(B) Maintaining sufficient liquidity to meet the financial
obligations of the condominium.
(g) The association may maintain a nonconforming investment of
association funds established before the effective date of this
2013 Act. When the nonconforming investment is liquidated, future
investments of the association funds must conform with the
requirements of this subsection. + }
(4) Within 90 days after the end of the fiscal year, the board
of directors shall:
(a) Prepare or cause to be prepared an annual financial
statement consisting of a balance sheet and income and expenses
statement for the preceding fiscal year; and
(b) Distribute to each unit owner a copy of the annual
financial statement.
(5) Subject to section 26, chapter 803, Oregon Laws 2003, the
association of unit owners of a condominium that has annual
assessments { - exceeding - } { + greater than + } $75,000
{ + and less than $500,000 + } shall cause the financial
statement required under subsection (4) of this section to be
reviewed { + in the manner required by subsection (9) of this
section + } within 180 days after the end of the fiscal year
{ - by an independent certified public accountant licensed in
the State of Oregon in accordance with the Statements on
Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. - }
(6) { + Subject to section 26, chapter 803, Oregon Laws 2003,
+ }the association of unit owners of a condominium that has
annual assessments of $75,000 or less shall cause the most recent
financial statement required by subsection (4) of this section to
be reviewed in the manner { - described in subsection (5) - }
{ + required by subsection (9) + } of this section within 180
days after the board of directors receives the petition
requesting review signed by at least a majority of the owners.
{ + (7) The association of unit owners of a condominium that
has annual assessments of $500,000 or more shall cause the
financial statement required under subsection (4) of this section
to be audited within 180 days after the end of the fiscal year in
the manner required by subsection (9) of this section. + }
{ - (7) - } { + (8) + } An association of unit owners
subject to the
{ - requirements of subsection (5) - } { + review
requirements of subsection (5) or (6) + }of this section may
elect, on an annual basis, not to comply with the requirements
{ - of subsection (5) of this section - } by an affirmative vote
of at least 60 percent of the owners, not including the votes of
the declarant with respect to units owned by the declarant.
{ + (9) The reviews of financial statements required under
subsection (5) or (6) of this section and the audits required
under subsection (7) of this section must be performed in
accordance with standards issued by the American Institute of
Certified Public Accountants by an independent certified public
accountant licensed in Oregon. + }
{ - (8)(a) - } { + (10)(a) + } The association shall
provide, within 10 business days of receipt of a written request
from an owner, a written statement that provides:
(A) The amount of assessments due from the owner and unpaid at
the time the request was received, including:
(i) Regular and special assessments;
(ii) Fines and other charges;
(iii) Accrued interest; and
(iv) Late payment charges.
(B) The percentage rate at which interest accrues on
assessments that are not paid when due.
(C) The percentage rate used to calculate the charges for late
payment or the amount of a fixed charge for late payment.
(b) The association is not required to comply with paragraph
(a) of this subsection if the association has commenced
litigation by filing a complaint against the owner and the
litigation is pending when the statement would otherwise be due.
{ - (9)(a) - } { + (11)(a) + } Except as provided in
paragraph (b) of this subsection, the documents, information and
records described in subsections (1) to (4) of this section and
all other records of the association of unit owners must be
reasonably available for examination and, upon written request,
available for duplication by a unit owner and any mortgagee of a
unit that makes the request in good faith for a proper purpose.
(b) Records kept by or on behalf of the association may be
withheld from examination and duplication to the extent the
records concern:
(A) Personnel matters relating to a specific identified person
or a person's medical records.
(B) Contracts, leases and other business transactions that are
currently under negotiation to purchase or provide goods or
services.
(C) Communications with legal counsel that relate to matters
specified in subparagraphs (A) and (B) of this paragraph and the
rights and duties of the association regarding existing or
potential litigation or criminal matters.
(D) Disclosure of information in violation of law.
(E) Documents, correspondence or management or board reports
compiled for or behalf of the association or the board of
directors by its agents or committees for consideration by the
board of directors in executive session held in accordance with
ORS 100.420 (1) and (2).
(F) Documents, correspondence or other matters considered by
the board of directors in executive session held in accordance
with ORS 100.420 (1) and (2).
(G) Files of individual owners, other than those of a
requesting owner or requesting mortgagee of an individual owner,
including any individual owner's file kept by or on behalf of the
association.
{ - (10) - } { + (12) + } The association of unit owners
shall maintain a copy, suitable for the purpose of duplication,
of the following:
(a) The declaration and bylaws, including amendments or
supplements in effect, the recorded plat, if feasible, and the
association rules and regulations currently in effect;
(b) The most recent annual financial statement prepared in
accordance with subsection (4) of this section;
(c) The current operating budget of the association;
(d) The reserve study, if any, described in ORS 100.175; and
(e) Architectural standards and guidelines, if any.
{ - (11) - } { + (13) + } The association, within 10
business days after receipt of a written request by an owner,
shall furnish the requested information required to be maintained
under subsection
{ - (10) - } { + (12) + } of this section.
{ - (12) - } { + (14) + } The board of directors, by
resolution, may adopt reasonable rules governing the frequency,
time, location, notice and manner of examination and duplication
of association records and the imposition of a reasonable fee for
furnishing copies of any documents, information or records
described in this section. The fee may include reasonable
personnel costs incurred to furnish the information.
{ - (13) - } { + (15) + } Subsection (4) of this section
first applies to property submitted to the provisions of this
chapter before January 1, 1982, when the board of directors of
the association of unit owners receives a written request from at
least one unit owner that a copy of the annual financial
statement be distributed in accordance with subsection (4) of
this section.
SECTION 9. { + Section 10 of this 2013 Act is added to and
made a part of ORS chapter 100. + }
SECTION 10. { + (1) Notwithstanding a provision in the
declaration or bylaws of a condominium, unless a resolution
adopted by the board of directors of an association of unit
owners provides otherwise, only the following individuals may be
an association account holder:
(a) A member of the board of directors, as provided in ORS
100.416; and
(b) An officer of the association who is either:
(A) An owner or co-owner of a unit; or
(B) A representative of an owner or co-owner of a unit who
meets the qualifications described in subsection (2) of this
section.
(2) An individual who is an officer of the association under
subsection (1)(b)(B) of this section must meet one of the
following qualifications:
(a) If a corporation, limited liability company or partnership
is the owner or co-owner of a unit, or owns an interest in an
entity that owns the unit, the officer of the association
representing the entity must be:
(A) An officer, employee or agent of the corporation;
(B) A member, manager, employee or agent of the limited
liability company; or
(C) A partner, employee or agent of the partnership.
(b) If a trustee holds legal title to a unit in trust for the
benefit of the owner of the beneficial interest in the unit, the
officer of the association representing the trust must be a
trustee.
(c) If a court has appointed an executor, administrator,
guardian, conservator or other individual to serve in a fiduciary
capacity for an owner of a unit, the officer of the association
must be the executor, administrator, guardian, conservator or
other individual appointed by the court. If the court appointed
an entity to serve in a fiduciary capacity for an owner of a
unit, the officer of the association must be an officer or
employee of the appointed entity.
(3) An association account holder may not delegate the holder's
authority to transact business on behalf of the association or to
access an association account. + }
SECTION 11. ORS 100.005 is amended to read:
100.005. As used in this chapter, unless the context requires
otherwise:
(1) 'Assessment' means any charge imposed or levied by the
association of unit owners on or against a unit owner or unit
pursuant to provisions of the declaration or the bylaws of the
condominium or provisions of ORS 100.005 to 100.910.
{ + (2) 'Association account' means an operating account, as
described in ORS 100.480, or a reserve account, as described in
ORS 100.175.
(3) 'Association account holder' means an individual:
(a) Who is designated and authorized to transact business on
behalf of an association of unit owners by accessing moneys in an
association account required by ORS 100.480; and
(b) Whose signature is on file with the financial institution
that maintains the association account. + }
{ - (2) - } { + (4) + } 'Association of unit owners' { +
or 'association' + } means the association provided for under ORS
100.405.
{ - (3) - } { + (5) + } 'Association property' means any
real property or interest in real property acquired, held or
possessed by the association under ORS 100.405.
{ - (4) - } { + (6) + } 'Blanket encumbrance' means a trust
deed or mortgage or any other lien or encumbrance, mechanic's
lien or otherwise, securing or evidencing the payment of money
and affecting more than one unit in a condominium, or an
agreement affecting more than one such unit by which the
developer holds such condominium under an option, contract to
sell or trust agreement.
{ - (5) - } { + (7) + } 'Building' means a multiple-unit
building or single-unit buildings, or any combination thereof,
comprising a part of the property. 'Building' also includes a
floating structure described in ORS 100.020 (3)(b)(D).
{ - (6) - } { + (8) + } 'Commissioner' means the Real
Estate Commissioner.
{ - (7) - } { + (9) + } 'Common elements' means the general
common elements and the limited common elements.
{ - (8) - } { + (10) + } 'Common expenses' means:
(a) Expenses of administration, maintenance, repair or
replacement of the common elements;
(b) Expenses agreed upon as common by all the unit owners; and
(c) Expenses declared common by ORS 100.005 to 100.625 or by
the declaration or the bylaws of the particular condominium.
{ - (9) - } { + (11) + } 'Condominium' means:
(a) With respect to property located within this state:
(A) The land, if any, whether fee simple, leasehold, easement
or other interest or combination thereof, and whether contiguous
or noncontiguous;
(B) Any buildings, improvements and structures on the property;
and
(C) Any easements, rights and appurtenances belonging to the
property submitted to the provisions of ORS 100.005 to 100.625;
and
(b) With respect to property located outside this state, the
property that has been committed to the condominium form of
ownership in accordance with the jurisdiction within which the
property is located.
{ - (10) - } { + (12) + } 'Conversion condominium' means a
condominium in which there is a building, improvement or
structure that was occupied prior to any negotiation and that is:
(a) Residential in nature, at least in part; and
(b) Not wholly commercial or industrial, or commercial and
industrial, in nature.
{ - (11) - } { + (13) + } 'Declarant' means a person who
records a declaration under ORS 100.100 or a supplemental
declaration under ORS 100.110.
{ - (12) - } { + (14) + } 'Declaration' means the
instrument described in ORS 100.100 by which the condominium is
created and as modified by any amendment recorded in accordance
with ORS 100.135 or supplemental declaration recorded in
accordance with ORS 100.120.
{ - (13) - } { + (15) + } 'Developer' means a declarant or
any person who purchases an interest in a condominium from
declarant, successor declarant or subsequent developer for the
primary purpose of resale.
{ - (14) - } { + (16) + } 'Flexible condominium' means a
condominium containing property that may be reclassified or
withdrawn from the condominium pursuant to ORS 100.150 (1).
{ - (15) - } { + (17) + } 'General common elements,' unless
otherwise provided in a declaration, means all portions of the
condominium that are not part of a unit or a limited common
element, including but not limited to the following:
(a) The land, whether fee simple, leasehold, easement, other
interest or combination thereof, together with any rights and
appurtenances;
(b) The foundations, columns, girders, beams, supports, bearing
and shear walls, windows, except glazing and screening, unit
access doors, except glazing and screening, roofs, halls,
corridors, lobbies, stairs, fire escapes, entrances and exits of
a building;
(c) The basements, yards, gardens, parking areas and outside
storage spaces;
(d) Installations of central services such as power, light,
gas, hot and cold water, heating, refrigeration, air
conditioning, waste disposal and incinerating;
(e) The elevators, tanks, pumps, motors, fans, compressors,
ducts and in general all apparatus and installations existing for
common use;
(f) The premises for the lodging of janitors or caretakers of
the property; and
(g) All other elements of a building and the condominium
necessary or convenient to their existence, maintenance and
safety, or normally in common use.
{ - (16) - } { + (18) + } 'Leasehold' means the interest of
a person, firm or corporation who is the lessee under a lease
from the owner in fee and who files a declaration creating a
condominium under ORS 100.100.
{ - (17) - } { + (19) + } 'Limited common elements' means
those common elements designated in the declaration, as reserved
for the use of a certain unit or number of units, to the
exclusion of the other units.
{ - (18) - } { + (20) + } 'Majority' or 'majority of unit
owners' means more than 50 percent of the voting rights allocated
to the units by the declaration.
{ - (19) - } { + (21) + } 'Mortgagee' means any person who
is:
(a) A mortgagee under a mortgage;
(b) A beneficiary under a trust deed; or
(c) The vendor under a land sale contract.
{ - (20) - } { + (22) + } 'Negotiation' means any activity
preliminary to the execution by either developer or purchaser of
a unit sales agreement, including but not limited to advertising,
solicitation and promotion of the sale of a unit.
{ - (21) - } { + (23) + } 'Nonwithdrawable property' means
property which pursuant to ORS 100.150 (1)(b):
(a) Is designated nonwithdrawable in the declaration and on the
plat; and
(b) Which may not be withdrawn from the condominium without the
consent of all of the unit owners.
{ + (24) 'Obligations of the United States Government' means
Treasury bills, notes or bonds. + }
{ - (22) - } { + (25) + } 'Percent of owners' or
'percentage of owners ' means the percent of the voting rights
determined under ORS 100.525.
{ - (23) - } { + (26) + } 'Purchaser' means an actual or
prospective purchaser of a condominium unit pursuant to a sale.
{ - (24) - } { + (27) + } 'Recording officer' means the
county officer charged with the duty of filing and recording
deeds and mortgages or any other instruments or documents
affecting the title to real property.
{ - (25) - } { + (28) + } 'Reservation agreement' means an
agreement relating to the future sale of a unit which is not
binding on the purchaser and which grants purchaser the right to
cancel the agreement without penalty and obtain a refund of any
funds deposited at any time until purchaser executes a unit sales
agreement.
{ - (26) - } { + (29) + } 'Sale' includes every disposition
or transfer of a condominium unit, or an interest or estate
therein, by a developer, including the offering of the property
as a prize or gift when a monetary charge or consideration for
whatever purpose is required by the developer. 'Interest or
estate' includes a lessee's interest in a unit for more than
three years or less than three years if the interest may be
renewed under the terms of the lease for a total period of more
than three years. 'Interest or estate' does not include any
interest held for security purposes or a timeshare regulated or
otherwise exempt under ORS 94.803 and 94.807 to 94.945.
{ - (27) - } { + (30) + } 'Special declarant right' means
any right, in addition to the regular rights of the declarant as
a unit owner, reserved for the benefit of or created by the
declarant under the declaration, bylaws or the provisions of this
chapter.
{ - (28) - } { + (31) + } 'Staged condominium' means a
condominium which provides for annexation of additional property
pursuant to ORS 100.115 and 100.120.
{ - (29) - } { + (32) + } 'Successor declarant' means the
transferee of any special declarant right.
{ - (30) - } { + (33) + } 'Termination date' means that
date described in ORS 100.105 (2)(b) or (7)(d).
{ - (31) - } { + (34) + } 'Transitional committee' means
the committee provided for under ORS 100.205.
{ - (32) - } { + (35) + } 'Turnover meeting' means the
meeting provided for under ORS 100.210.
{ - (33) - } { + (36) + } 'Unit' or 'condominium unit'
means a part of the property which:
(a) Is described in ORS 100.020 (3);
(b) Is intended for any type of independent ownership; and
(c) The boundaries of which are described pursuant to ORS
100.105 (1)(d).
{ - (34) - } { + (37) + } 'Unit designation' means the
number, letter or combination thereof designating a unit in the
declaration and on the plat.
{ - (35) - } { + (38) + } 'Unit owner' means, except to the
extent the declaration or bylaws provide otherwise, the person
owning fee simple interest in a unit, the holder of a vendee's
interest in a unit under a recorded installment contract of sale
and, in the case of a leasehold condominium, the holder of the
leasehold estate in a unit.
{ - (36) - } { + (39) + } 'Unit sales agreement' means a
written offer or agreement for the sale of a condominium unit
which when fully executed will be binding on all parties. 'Unit
sales agreement ' includes but is not limited to an earnest money
receipt and agreement to purchase and other such agreements which
serve as an agreement of sale for a cash transaction or which are
preliminary to the execution of an installment contract of sale,
but does not include a reservation agreement.
{ - (37) - } { + (40) + } ' Variable property' means
property described in ORS 100.150 (2) and designated as variable
property in the declaration and on the plat.
{ - (38) - } { + (41) + } 'Voting rights' means the portion
of the votes allocated to a unit by the declaration in accordance
with ORS 100.105 (1)(j).
SECTION 12. Section 26, chapter 803, Oregon Laws 2003, as
amended by section 39, chapter 641, Oregon Laws 2009, is amended
to read:
{ + Sec. 26. + } The requirements of ORS 100.480 (5) { + and
(6) + } first apply:
(1) Commencing with the fiscal year following the turnover
meeting for the association of unit owners of a condominium
created prior to January 1, 2004, if the turnover meeting has not
yet occurred on January 1, 2004.
(2) Commencing with the fiscal year beginning in calendar year
2004 for the association of unit owners of a condominium created
prior to January 1, 2004, if the turnover meeting has occurred on
or before January 1, 2004.
(3) Commencing with the fiscal year following the turnover
meeting for the association of unit owners of a condominium
created on or after January 1, 2004.
SECTION 13. ORS 94.640 is amended to read:
94.640. (1) The board of directors of an association may act on
behalf of the association except as limited by the declaration
and the bylaws. In the performance of their duties, officers and
members of the board of directors are governed by this section
and the applicable provisions of ORS 65.357, 65.361, 65.367,
65.369 and 65.377, whether or not the association is incorporated
under ORS chapter 65.
(2) Subject to subsection (7) of this section, unless otherwise
provided in the bylaws, the board of directors may fill vacancies
in its membership for the unexpired portion of any term.
(3) At least annually, the board of directors of an association
shall review the insurance coverage of the association.
(4) The board of directors of the association annually shall
cause to be filed the necessary income tax returns for the
association.
(5) The board of directors of the association may record a
statement of association information as provided in ORS 94.667.
(6)(a) Unless otherwise provided in the declaration or bylaws,
at a meeting of the owners at which a quorum is present, the
owners may remove a director from the board of directors, other
than directors appointed by the declarant or individuals who are
ex officio directors, with or without cause, by a majority vote
of owners who are present and entitled to vote.
(b) Notwithstanding contrary provisions in the declaration or
bylaws:
(A) Before a vote to remove a director, owners must give the
director whose removal has been proposed an opportunity to be
heard at the meeting.
(B) The owners must vote on the removal of each director whose
removal is proposed as a separate question.
(C) Removal of a director by owners is effective only if the
matter of removal was an item on the agenda and was stated in the
notice of the meeting if notice is required under ORS 94.650.
(c) A director who is removed by the owners remains a director
until a successor is elected by the owners or the vacancy is
filled as provided in subsection (7) of this section.
(7) Unless the declaration or bylaws specifically prescribe a
different procedure for filling a vacancy created by the removal
of a director by owners, the owners shall fill a vacancy created
by the removal of a director by the owners at a meeting of
owners. The notice of the meeting must state that filling a
vacancy is an item on the agenda.
(8)(a) All meetings of the board of directors of the
association shall be open to owners, except that at the
discretion of the board, the board may close the meeting to
owners other than board members and meet in executive session to:
(A) Consult with legal counsel.
(B) Consider the following:
(i) Personnel matters, including salary negotiations and
employee discipline;
(ii) Negotiation of contracts with third parties; or
(iii) Collection of unpaid assessments.
(b) Except in the case of an emergency, the board of directors
of an association shall vote in an open meeting whether to meet
in executive session. If the board of directors votes to meet in
executive session, the presiding officer of the board of
directors shall state the general nature of the action to be
considered and, as precisely as possible, when and under what
circumstances the deliberations can be disclosed to owners. The
statement, motion or decision to meet in executive session must
be included in the minutes of the meeting.
(c) A contract or an action considered in executive session
does not become effective unless the board of directors,
following the executive session, reconvenes in open meeting and
votes on the contract or an action, which must be reasonably
identified in the open meeting and included in the minutes.
(9) The meeting and notice requirements in subsections (8) and
(10) of this section may not be circumvented by chance or social
meetings or by any other means.
(10) In a planned community in which the majority of the lots
are the principal residences of the occupants, meetings of the
board of directors must comply with the following:
(a) For other than emergency meetings, notice of board of
directors' meetings shall be posted at a place or places on the
property at least three days prior to the meeting or notice shall
be provided by a method otherwise reasonably calculated to inform
lot owners of such meetings;
(b) Emergency meetings may be held without notice, if the
reason for the emergency is stated in the minutes of the meeting;
and
(c) Only emergency meetings of the board of directors may be
conducted by telephonic communication or by the use of a means of
communication that allows all members of the board of directors
participating to hear each other simultaneously or otherwise to
be able to communicate during the meeting. A member of the board
of directors participating in a meeting by this means is deemed
to be present in person at the meeting.
(11) The board of directors, in the name of the association,
shall maintain a current mailing address of the association.
(12) The board of directors shall cause the information
required to enable the association to comply with ORS 94.670
{ - (8) - } { + (10) + } to be maintained and kept current.
(13) As used in this section, 'meeting' means a convening of a
quorum of members of the board of directors at which association
business is discussed, except a convening of a quorum of members
of the board of directors for the purpose of participating in
litigation, mediation or arbitration proceedings.
SECTION 14. ORS 100.417 is amended to read:
100.417. (1) The board of directors of an association of unit
owners may act on behalf of the association except as limited by
the declaration or bylaws. In the performance of their duties,
officers and members of the board of directors shall be governed
by this section and the applicable provisions of ORS 65.357,
65.361, 65.367, 65.369 and 65.377 whether or not the association
is incorporated under ORS chapter 65.
(2) Subject to subsection (8) of this section, unless otherwise
provided in the bylaws, the board of directors of an association
may fill vacancies in its membership for the unexpired portion of
any term.
(3) At least annually, the board of directors of an association
shall review the insurance coverage of the association.
(4) The board of directors of the association annually shall
cause to be filed the necessary income tax returns for the
association.
(5) The board of directors of the association may record a
statement of association information as provided in ORS 94.667.
(6) The board of directors, in the name of the association,
shall maintain a current mailing address.
(7) The board of directors shall cause to be maintained and
kept current the information required to enable the association
to comply with ORS 100.480 { - (11) - } { + (13) + }.
(8)(a) Unless otherwise provided in the declaration or bylaws,
at a meeting of the unit owners at which a quorum is present, the
unit owners may remove a director from the board of directors,
other than directors appointed by the declarant or individuals
who are ex officio directors, with or without cause, by a
majority vote of unit owners who are present and entitled to
vote.
(b) Notwithstanding contrary provisions in the declaration or
bylaws:
(A) Before a vote to remove a director, unit owners must give
the director whose removal has been proposed an opportunity to be
heard at the meeting.
(B) The unit owners must vote on the removal of each director
whose removal is proposed as a separate question.
(C) Removal of a director by unit owners is effective only if
the matter of removal was an item on the agenda and was stated in
the notice of the meeting required under ORS 100.407.
(c) A director who is removed by the unit owners remains a
director until a successor is elected by the unit owners or the
vacancy is filled as provided in subsection (9) of this section.
(9) Unless the declaration or bylaws specifically prescribe a
different procedure for filling a vacancy created by the removal
of a director by unit owners, the unit owners shall fill a
vacancy created by the removal of a director by the unit owners
at a meeting of unit owners. The notice of the meeting must state
that filling a vacancy is an item on the agenda.
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